Question 1
True or False.
In the first-order model
E(
y) =
β0 +
β1x1 +
β2x2 +
β3x3,
β2 represents the slope of the line relating
y to
x2 when
β1 and
β3 are both held fixed.
◦ True
◦ False
Question 2
The printout shows the results of a first-order regression analysis relating the sales price
y of a product to the time in hours
x1 and the cost of raw materials
x2 needed to make the product.

a. | What is the least squares prediction equation? |
b.
Identify the SSE from the printout.
c.
Find the estimator of
σ2 for the model.